The Ugly Truth About Big Oil Companies

[Sled Dog]

Basically every penny that Big Oil has invested has been deducted to get to the bottom line that is shown on their financial statements. HBarlow, I have the feeling that you have never had any dealings with and oil company or you work for one and feel like you have to defend them. Before you go and call me a lib (what ever that is) I believe in the American way, that people and companies should be able to make a profit at what they do. But you should have to deal with these companies, they will run over you if they get the chance. How would you feel if me and some of my buddies got together and purchased all the municipal water companies and decided to set a price for water that you could just barely afford? We are not to far off that example.

Agreed... .

 

[JFaulkner]

I'm saying Big Oil is gouging the American Public with their high prices and reaping RECORD profits from it while the American economy is hitting the bottom.



I've heard enough of "supply and demand" is driving the prices up. It just ain't true.

• Supplies are in line with what they were a year ago.
  
• Demand for Gasoline is where it was a year ago.
  
• Demand for "distillates" (diesel fuel and heating oil) is DOWN.
  

First it was the hurricanes that caused the price increase, then it was the Chinese demand, then it was the THREAT of hurricanes, now what is it?



Scott

Please sir if you will give me links to your sources of information.



If 8% profit margin is "gouging" then you'd better not look at the margins your paying elsewhere. I'll actually give you credible links, not "ballpark" facts that support my views as you have seem to have done above.



Here is a quote from an article from MSNBC from 2005 addressing profit. (direct link)

Even as their overall profits have soared, major oil companies are earning a relatively modest 8. 7 percent profit margin -- the portion of the sale of each barrel that hits the bottom line. Major banks and drug makers, for example, enjoy profits margins that are twice as big.

Here is another article from the Washington Post (direct link)



While the total profits shown by oil companies may be high, as a percentage they are lower than any other company even close to their size. People LOVE to throw out the term "Price gouging". Apparently they have NO CLUE what that even means.

Definition = Price gouging is a frequently pejorative reference to a seller's asking price that is much higher than what is seen as 'fair' under the circumstances. In precise, legal usage, it is the name of a felony that applies in some of the United States only during civil emergencies. In less precise usage, it can refer either to prices obtained by practices inconsistent with a competitive free market, or to windfall profits.

I'll try and explain this to you. If the price of the raw materials used to make a product goes up, in this case oil. And the mfg company raises it's price accordingly to this increase, but doesn't increase it's profit margin it's not gouging! I don't understand the logic behind this. If I sell lumber and the price of a 2x4 goes up $1. 00 and I raise my price $1. 00 would you also call that "gouging"? Don't give me the whole "need" and "want" speech since builders need wood the same as drivers need fuel.



I know you like to believe that demand isn't going up but your sadly mistaken.



I also suppose this shouldn't have anything to do with oil prices?



Also since when is demand for heating oil down in the winter? Sorry but none of what you said above makes any sense. I know you all want to believe that it's all a conspiricy and there is a guy named Exxon sitting in a big office smoking a Cuban cigar laughing all the way to the bank, but again sadly you would be wrong again. The ones that profit are the share holders, so buy some stock, drive less and stop complaining!

 

[JFaulkner]

Hugo Chaves (Ven. ) says he could sell us U. S. fuel at 25 cents/gallon.

I wish he was running for President. I'd vote for that.

Speaking of D-A. I believe your above quote pretty much sums those 2 words up! I bet Adolf Hitler could have installed some showers in your house cheaper than a plumber in 1940's!:-laf Nevermind your right, I'd much rather live under Hugo than deal with fuel prices, I never really cared much for food, freedom of speech, capitalism ect... ..... D-B:-laf

 

[rbattelle]

I know you all want to believe that it's all a conspiricy and there is a guy named Exxon sitting in a big office smoking a Cuban cigar laughing all the way to the bank, but again sadly you would be wrong again.

As someone whose neighbor is the poster child for conspiracy theorists, I've come to understand there is no way to convince otherwise someone who believes a conspiracy using rational arguments, because belief in a conspiracy is itself denial of everything that is rational and unquestioning acceptance of all that is counter to reality.



Everyone calm down, let's keep this a rational debate among gentlemen. No need to call each other names.



Ryan

 

[klenger]

I'm with Ryan, no matter what the subject is.

 

[Sled Dog]

The link, check the link. YouTube - Lindsey Williams - The Energy Non-Crisis - Part 1 of 8

8 parts.



At . 25/gal one idiot is as good as another.

 

[BigPapa]

Please sir if you will give me links to your sources of information.



Also since when is demand for heating oil down in the winter? Sorry but none of what you said above makes any sense.

Check here:



This Week In Petroleum



Charts from that website are posted here:



https://www.turbodieselregister.com...s-2003-2007/198141-need-vent.html#post1906022



Scott

 

[blacksheep4x4]

What gets me is that people don't recognize the power they have. If your unhappy about Exxons profits don't buy thier fuel. Buy it from a canadian owned fuel supplier like Sinclair. If you buy from someone like Sinclair you keep your money out of Exxons pockets not to mention the middle easts pockets. Then maybe Exxon will get a clue and see that what they are doing is not ok with us.

 

[rbattelle]

What gets me is that people don't recognize the power they have. If your unhappy about Exxons profits don't buy thier fuel.

I think that's an excellent point, and I agree with you that it seems many people don't recognize this fact. Or they give up because they think "I'm only one man, what effect can I possibly have?".



Ryan

 

[RRB]

I can't believe my eyes with some of these posts. I am one of many millions of share holders of Exxon Mobil as well as several other other 'evil oil companies' and suppliers of oil companies (Not sure why the Libs like to refer to them as evil). I am glad that most of America thinks Exxon Mobil is the only oil company that needs to be picked on even though they don't have the highest profit ratio. Oil companies are nothing more than publicly owned businesses operating in a free capitalistic society with a mission of making money. There are several reasons the oil market is currently strong, some have been accurately discussed in previous posts. The bottom line is: When they stop making money, the stock will be in less demand and reduce in value. Hopefully I'll be wise enough to sell before the fall and reinvest in yet another well managed profitable company. I have invested my money with the intention of earning a profit, nothing more. (Unfortunately the share price has dropped almost 10% over the past 3 months). I'm sure we'll hear more crazy conspiracy theories in future posts.

 

[BigPapa]

Well Roland,



I'm not trying to pick on poor Exxon/Mobile, Harvey's the one that brought their name up. "Big Oil's" out there under several names. Just more examples of how "most of your cost went directly to the middle-east or wherever the crude was purchased" isn't necessarily true. Just how many "Big Oil" companies are out there pulling in the same record profits?



And I'm FAR from being a "Lib". :-laf



Scott

 

[HBarlow]

Apparently there are many who cannot grasp the simple concepts involved in understanding what happens to a gallon of diesel or gasoline at the retail level when the cost of crude rises at the well. It is easier for those people to believe in conspiracy theories and hate the companies that provide the products.

 

[BigPapa]

Come on Harvey, what's it going to be? Am I and all the trucking companies paying over $4/gal for diesel because Big Oil has to pay so much in taxes... ...

Consider how much the price of a gallon of gasoline or diesel could be reduced if big oil companies like Exxon/Mobil didn't have to pay $100. 7 BILLION dollars to the federal government on their 2007 income alone.

or because Big Oil has to pay so much for a barrel of oil... ...

... the simple concepts involved in understanding what happens to a gallon of diesel or gasoline at the retail level when the cost of crude rises at the well.

Either way, Big Oil is pulling in record profits while America suffers. All I hear is your support for Big Oil.



Scott

 

[Rams-n-Hogs]

I know this has been discussed before, but it's simple, really.



There are 2 ways to look at this.



As a dollar figure, the oil companies are pulling in record profits. This is only because of the quantity of oil that they sell.



As a percentage figure, their profits are right in line,(8-10%), with most other companies, with some companies being higher, and some lower. Those other companies just don't do the quantity of business that the oil companies do.

 

[RRB]

2007 results



Exxon Mobile

Net Profit Margin: 0. 11%

EBITDA Margin: 19. 50%

Pre-tax Profit Margin: 19. 90%



Another randomly selected Petroleum Company: Berry Petroleum (BRY)

Net Profit Margin: 0. 25%

EBITDA Margin: 53. 20%

Pre-tax Profit Margin: 40. 30%





Looks like I should have bought Berry... . If I only knew. There's definitely other economic factors at work here. Berry is a much smaller company but from a profitability perspective... wow.

 

[JFaulkner]

Apparently there are many who cannot grasp the simple concepts involved in understanding what happens to a gallon of diesel or gasoline at the retail level when the cost of crude rises at the well. It is easier for those people to believe in conspiracy theories and hate the companies that provide the products.

I can't believe my eyes with some of these posts. I am one of many millions of share holders of Exxon Mobil as well as several other other 'evil oil companies' and suppliers of oil companies (Not sure why the Libs like to refer to them as evil). I am glad that most of America thinks Exxon Mobil is the only oil company that needs to be picked on even though they don't have the highest profit ratio. Oil companies are nothing more than publicly owned businesses operating in a free capitalistic society with a mission of making money. There are several reasons the oil market is currently strong, some have been accurately discussed in previous posts. The bottom line is: When they stop making money, the stock will be in less demand and reduce in value. Hopefully I'll be wise enough to sell before the fall and reinvest in yet another well managed profitable company. I have invested my money with the intention of earning a profit, nothing more. (Unfortunately the share price has dropped almost 10% over the past 3 months). I'm sure we'll hear more crazy conspiracy theories in future posts.

I know this has been discussed before, but it's simple, really.



There are 2 ways to look at this.



As a dollar figure, the oil companies are pulling in record profits. This is only because of the quantity of oil that they sell.



As a percentage figure, their profits are right in line,(8-10%), with most other companies, with some companies being higher, and some lower. Those other companies just don't do the quantity of business that the oil companies do.

2007 results



Exxon Mobile

Net Profit Margin: 0. 11%

EBITDA Margin: 19. 50%

Pre-tax Profit Margin: 19. 90%



Another randomly selected Petroleum Company: Berry Petroleum (BRY)

Net Profit Margin: 0. 25%

EBITDA Margin: 53. 20%

Pre-tax Profit Margin: 40. 30%





Looks like I should have bought Berry... . If I only knew. There's definitely other economic factors at work here. Berry is a much smaller company but from a profitability perspective... wow.

None of these posts have any business being here since they make too much sense and don't walk the conspiracy theory line. Sorry guys but you need to take your common sense elsewhere. It has no business being on an internet forum. :-laf



On that note: Just wait until the price of food goes up because of ethanol, that will be called "Big Corn" and the high price of milk will be "Big Moo" ect. Then they'll want to make diesel from coal which will obviously be called "Big Coal". Just another way of "the man" keeping you down. I'm very sad I haven't seen anyone bring up the: If we all don't buy gas on date X that'll bring the oil companies to their knees!!!!! and they'll have to lower the price. HAHA



For anyone in the trucking industry I have a little tip. Being in the same business since the 1940's, this has always worked for us... ... . DON'T HAUL CHEAP FREIGHT!!!! If the rate they're offering won't cover expenses (yes that means fuel, tires, maintaince ect. )+ PROFIT (there's that evil word again) don't haul it, it's not that difficult. I know too many people that take low paying loads "just to get by". I can sit at home and go broke, I don't need to drive around and wear out equipment to do it! If your under contract and didn't have a fuel surcharge in there that's your fault. And the company you undercut that probably did have it in their bid is going to sit back and watch you fail. The whole phrase of: The lack of planning on your part, doesn't constitute and emergency on my part. Applies to this 100%.